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Utility Sector Lifts Shares

Updated May 28, 1996 11:06 a.m. ET

LONDON -- Share prices moved slightly higher in trading Tuesday, driven by a rising utilities sector.

Around midday, the FT-SE 100 index was up 14.2 points to 3766.3 on volume of 3.8 million shares. The benchmark June futures contract stands at 3775.0 points, compared with 3755.0 at Friday's close. The index rose 5.1 points on Monday

The main excitement was in water stocks, said Peter Caulkett, a salesman with Teather & Greenwood.

Early Tuesday, Scottish Power offered 1.6 billion pounds for Southern Water. Separately, Southern Electric indicated it was also interested in gaining control of Southern Water, fueling speculation of a bidding war for the water company. Southern Water's shares gained 37% on the news, and the shares of smaller water companies were boosted also as speculation rose that they could be the next target, said analysts.

Mr. Caulkett said retail and consumer stocks were also in favor following press reports that the economy's getting better and consumer demand is picking up.

In addition, London-based retail consultant Verdict released a report early Tuesday saying consumer demand is likely to pick up over the next three years, returning consumer confidence to levels seen in the late 1980s.